sounds potentially very severe. i hope i eventually get the opportunity to trade under more natural leverage conditions. this phenomenon has gotten a little ridiculous better not be a bailout by the taxpayers
I just reread my own post = 80 pts???!!!!! How do you guys see it playing outnext week? Three day settlement. Thursday should be hell day for these guys.
we're in worse shape than in '29..... let's say you need to dump some BBB- paper and no one bids.... what's it worth?
A contact spoke to an exchange official. The markdowns are real, and there isn't enough equity in the CDO's to cover the debits. THat means, it flows to equities. We now find out if a plunge protection team exists. I told Byrne to prepare an "I told you so" speech. He has spoken about a systemic problem. This is it. It might end naked shorting. I doubt the Prime Brokers will be in the mood to hold more debits.
Well, <b>daddyeaux</b>, it may or may not be worse than '29, but all I was saying is the Fed isn't so stupid that it would raise rates into the teeth of a liquidity crisis, like it did in '29. That lesson's been learned. A lot of people on this board don't seem to like that lesson, but regardless. It's simply not going to happen again, not that way anyway.